Skip to main content

tv   Fast Money  CNBC  March 26, 2014 5:00pm-6:01pm EDT

5:00 pm
tomorrow's trade? >> all about the banks. everybody is talking about citi and how it failed the fed test. and this is why we saw vikram leave the bank. >> the ken lewis story is interesting. accountability's a key theme. >> and, herb, you're going to download your candy crush game. "fast money" is coming up in a few seconds. amanda, what's on tap? >> you've been talking about the banks. we're going to talk about the banks, as well. and we have a very respected dick bove. he's going to give the analysis of the stress tests coming up. "fast money" starts right now. we're live from the nasdaq market site in new york's time square. i'm standing in for melissa lee for the next three days. you're stuck with me. >> awesome. >> sorry. well, we have our traders here tonight. tim seymour, steve grasso, karen finerman and guy adami. it was an ugly day on wall
5:01 pm
street, right? the major indices across the board, with the nasdaq, the biggest loser. but we're going to start with the lose in the last hour on the bank stress test. kayla has more details for us. >> there was good, bad and ugly when we saw the banks release what they were giving back to share holders. we'll start with the good. a lot of the banks did pass the fed test with no objections of what they plan to give back to shareholders. bank of america is increasing its dividend to a nickel. goldman sachs, interestingly, was one in question with the federal reserve. it had to resubmit its plan because the original one it submitted, it would give back so much capital that it wouldn't pass the fed level. we got a vague statement from goldman after hours, saying our plan provides flexibility, but not what that capital plan would be and if it would change. jpmorgan, a slight bump to
5:02 pm
buybacks. we should note, that is very slight. morgan stanley doubled its dividend and announced a new buyback of shares, as well. the first time it's done that since it finished the purchase of morgan stanley smith barney. and wells fargo, a buyback of shares. a slight increase for wells fargo. we want to look at the bank of america chart. while the buyback is news there. we can't look at the tape without mentioning that it did just ink a $9.3 billion settlement over bad mortgages that countrywide and merrill lynch sold to fannie and freddie. that's part of the contribution of the traders at bank of america. the one that everybody will be talking about is citigroup. for the second time, getting a rejection from the fed. this time on the fed calls,
5:03 pm
qualitative issues. it says that the capital planning process wasn't up to snuff. it didn't do a good job of engaging its risks in its global business unit. it saw a $6.4 billion buyback. because of that rejection, now, it's going to hold the status quo, $1.2 billion in buyback this next year. that's the same it's been since former ceo, vikram pandit, had in 2011. the new ceo says he's disappointed by the fed's decision to reject the plan. but it echoes the rejection of pandit leaving the bank. there's a lot of questions from citi executives from shareholders on why it happened again. >> we're watching citi stock drop by over 6%. let's bring in bank analyst, dick bove.
5:04 pm
you said the second batch of stress tests is way more important than the ones of last week. what's your key take away from the ones today? >> i'm kind of happy by what i'm listening to. we have a sell on citigroup because we think the company is facing a pretty tough time, with all of the international upset. and particularly, as a result, what went on where they let $400 million out the door, without basically, you know, stopping it. so, i think that it made a heck of a lot of sense for the fed to come down on citigroup because clearly, their controls are not in place. my favorite two stocks for the last 18 months have been morgan stanley and bank of america. so, it's disappointing that they're going to have to come up with $9 billion for fannie mae. but we're recommending that stock. it's good to know that basically, they're getting those problems behind them. they can increase that dividend to a nickel. but i think overall, the key point that emerges, you know,
5:05 pm
from these stress tests on what's happening today, is that these banks are in terrific condition. they're in wonderful shape. they have more capital than they've had in something like, going back to 1938. they're very liquid. it looks like this year, there will be a sizable increase in their loan volume. and interest rates will go up. that means more volume. i think the earnings will go up. the stocks are selling at pretty close to book. i think they're pretty good stocks. >> dick, it sounds to me like you're saying that citi's a buy here. ultimately, they got their wrist slapped for stuff that the fed is supposed to be doing, just to show they're under the thumb. it is the cheapest of trades at seven-times price to book. isn't this a great opportunity in a stock that probably was the cheapest in the bunch going into today? >> no. sell, sell, sell. as jim cramer would say. >> explain that.
5:06 pm
>> well, first off, the reason we have the sell recommendation on the stock is nothing to do with what happened today. it has to do with the fact that if you look at fourth-quarter earnings, there's two disturbing signals there. the first one is, basically, the company is the only bank in a i'm aware of at least the ones that i follow, that showed an increase in loan losses in north america. they showed them in asia. they showed them in latin america. that was not surprising. why would this have loan losses in north america. secondly, this management team was put in place, because their job is to get positive earnings level on the income statement. in the last couple of quarters, it's been negative, the earnings leverage. the net effect is, they're not controlling costs the way they promised they would. the situation in mexico, in my view, is a horror show. basically, at this stage, seven years after, you know, the big crisis, which almost made -- which did make them bankrupt, this company finds that it
5:07 pm
doesn't have controls in mexico. and lets 400 million walk out the door. this company is not a buy. i don't care what the price to tangible book is, it's not a buy. >> we have to leave it there. sell, sell, sell, citigroup. you disagree with dick bove. >> i love the global franchise. i think they had issues in battom x. that's why i think bank of america is interesting, now that they've cleared the deck. >> what about you, karen? >> i'm long citi. i agree with tim. it is by far, the cheapest. they will get it together. admittedly, it's taken longer. i have to push back on dick bove. looked like they had a 49.60 target. that's where it was yesterday. i think this is a premiere franchise and worth owning. >> bank of america has to be a buy off of this. you have to gauge these as you
5:08 pm
would earnings. you have estimates. you have what people are looking at. and if they came in a little bit short, that's fine and well. and you can see that it's reflected in the stock price. bank of america ran pretty much the most out of all of the other banks. >> right. >> and then, it stops at the 18-dollar level. technicals, to me, get in on the low 20s on bank of america. it might back up with the group. but ut ultimately, low 20s. >> bank of america and morgan stanley has been his favorite picks. what about you, guy? >> they needed to pick somebody out to show this program had teeth. i think that's the point tim was making. and citi's an obvious target. very easy to do. how do you trade it? 46 was the low back in july. it bounced from 46 recently. so, i think it traded from the long side against 46. i think you get a bounce. the one bank that really traded interesting u.s. bancorp, all-time high today, reverse traded lower. bit of an outside day.
5:09 pm
technically not that good. for the first time in a while, it gives me pause in u.s. bank. and maybe it's time to take some issue. >> the only issue i have with the test, if this is the catalyst, if this is why the banks were trading higher, you might want to sit back and hold a on. if you have a lot of conviction, like karen and tim to, on positions, i have longer bank of america a little lower. i'm not going to add here. i'd rather wait a bit. this is the catalyst that started it. >> the catalyst, really quick, there's a quick location going into banks. especially money center banks. if you listen to dick bove, all of the banks have tremendous balance sheets. you're not worried about citi's balance sheet going to dust. it's a 6% pullback on a stock that was the cheapest in the sector. qualitative factors. and they need to keep these guys under their thumb. >> on that word, thanks very much, guys. facebook's moving to virtual reality, translating to real
5:10 pm
losses today. is today's pullback for facebook a buying opportunity? and find out why trading in google could be very, very messy tomorrow. we'll explain. we know we're not the center of your life, but we'll do our best to help you connect to what is.
5:11 pm
in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.
5:12 pm
your all-access pass to full seasons of tv's hottest shows for free with xfinity on demand. it's the perfect week to work from home. so replace your doorbell with a hornet's nest. there's no time for disturbances. ♪ or take a 7-day lunch hour. romance! action! other shouty words. there's watching. then there's watchathoning. boom. starts march 31st. ♪
5:13 pm
welcome back to "fast money," everybody. look at twitter, kicking off our top trades today. taken to the wood shed. the social media name down 47% from its all-time high. >> kudos to guy, though. >> we've done a nice job. i didn't think it would get down to 44. we did think it would go down to the high 40s, when it traded up to 59. the last quarter was not good. the stock sold off. got a bounce up to 58. now, here we are. this is where we should have been, give or take, all along. i think it's getting really sort of compelling, just as a trade. but i thought that yesterday. so, clearly, i was wrong by a couple bucks. when it looks the worse, that's the time to buy it. this is one of those times. i don't know when the release is. i think it's pending. i'm looking for the date. i think you start to build right here. >> do you -- that's the question. we talked about this. the question is, do you think this is selling off because of
5:14 pm
the lockup? or because of the terrible quarter? i think it's more about the fact that there's subs. there's activity on a daily basis, is not working. i don't think it has -- >> the engagement is not there. >> a huge lockup. it has more to do with a lousy quarter. >> the lockup's been out there since the stock went public. we knew about that for a while. we didn't know about the quarter until they reported. it was a lousily quarter. but the stock gives you opportunities. it's bounced a number of times. i think it is right at the level now. you don't buy it when it looks the best. you buy it when it looks the worst. >> we're getting close to there. the relative strength indicator, rsi. it's really important. it tells you how unloved the stock is. the stock with a 23, 24 rsi, means this has bombed out. and at 40 bucks, you get back to
5:15 pm
the rpi spike. i think this goes the way of facebook. >> 37% short interest, as well as your rsi tidbit there. both are likely to make a bounce. >> a compelling trade according to guy adami. >> talking about facebook. it saw its worst day in four months, making it our next top trade, after it acquires oculus for $2 billion. it is the second multibillion deal for facebook this year. let's bring in josh lipton with more. $2 billion for oculus. what's next, josh? >> we know that zuckerberg has a lot of money. not afraid to spend it. we were talking about facebook's acquisition of what's app. now, $2 billion for ak oculus. and why is facebook interested
5:16 pm
in buying a company that makes virtual reality headsets. and some might think facebook could be taking a page from google, which is exploring opportunities outside of its core mission. google moving into wearables. moon shots, like self-driving cars. but the question for mark s zuckerberg, he does not see it that way. he thinks the computing platform today is mobile. and tomorrow it will be virtual reality. he sees it as the next social platform. this will be the way that mandy and josh talk to each other. and maybe the way they buy goods and services. it's obviously impossible to know whether zuckerberg is right. whether virtual reality is going to be the next major new communications platform. but analysts say, even if he made a bad bet, $2 billion isn't crazy for a company the size of facebook. mandy? >> wow, josh. we never have to talk in real
5:17 pm
life ever again. the real world is so 1998. let's trade facebook, which had a terrible day today. >> we thought that instagram was a terrible purchase as well. and that really got people back interested in facebook. we don't know what he's really thinking about with this. but if he can somehow save the core. everybody thinks the core business is what's dead. if he changes this and guy's an adopter of all of this technology. but if somehow he can change this and you get that open-source feel to it and you have real estate agents doing it, vacation places doing it, this is going to be a big event for him. i don't like the hardware space, per se. >> his first foray into ha hardware. >> he has a history of making purchases outside of the core. and the investing population is saturated with it. >> it makes you beg the question of what does facebook want to be?
5:18 pm
it's almost like it's trying to be google, putting its finger in these buys. and mike rico said, they were burned by their late move into mobile. they want to be preemptive now. and maybe facebook is doing something like this because they can't let oculus fall into google's hands. >> is he a visionary. or is he getting distracted? >> doing a land grab. >> and slowing at anything. $2 billion for them, not a lot of money. but it makes you wonder. and so, that is part of what people are -- i guess disappointed with. i give them the benefit of the doubt. i remember google buying youtube was a ridiculous waste of money. and that turned out to be great. >> successful. >> if you look at the metrics and the here and now, this is an opportunity. the first quarter is coming through. and everything we're hearing the that it's decent. this is 1.2% of market cap. not a big deal. i think they're locking up the
5:19 pm
innovative minds out there. they have a team that i think is right now, they're so far ahead of the competition in virtual, you have to believe these are people that are going to be there to stay on the edge of the wave. that's what they're buying. they bought the team. that's what they bought. >> we might as well look at what google is up to. tomorrow it could get confusing. google's class c stock will begin trading. ahead of that move, issued trading will begin tomorrow. there will be three different stock symbols for google shares. goog, with entitlement to the c shares, goocv. and gooav, into the class a shares after the distribution of the c shares. the bottom line for you all is it could cause confusion tomorrow. right? >> it could. and obviously, when you put it like that, it's definitely looks very confusing. >> but all they're trying to do
5:20 pm
is create another entity. it is a stock split without voting rights. that's what they're trying to do. >> what's going to be confusing for investors, all earnings estimates are going to be cut in half. you have a place where this is something that will be on the surface, confusing. from a stock efficiency, no problem, at all. a stock split would be a big deal in terms of inefficiencies in the market. >> bottom line, what does it mean for the investor? >> i don't think it means a thing for the investor there. the control rests firmly with the top management. that's not changing at all. really, it shouldn't mean anything. >> are you long? >> i am long. >> and both of the stocks are going to trade in lock-step. that's the point of this. >> and within the market. >> and within the first year, the company, google, is pretty much making sure they're going to trade in lock step. >> that's an important point to know. a neutral from you, grasso. >> we have breaking news here. dom, what are you looking at? >> we have index changes, specifically hitting the s&p 500
5:21 pm
large gap and s&p 500 mid cap indices. we're going to have changes effective on the close of trading tuesday, april 1st. essex property trust will be a part of the s&p 500. it will replace cliffs natural resources, which is being moved from the s&p to the s&p 400 mid cap. cliffs natural resources, moving down. and essex moving up. essex is a real estate investment trust that specializes in apartments. and cliffs specializes in coal and iron ore. cliffs moving out of the s&p. it will be replaced, effective the close of business, april 1st, by essex property trust. back over to you. >> april fool's day reshuffle. coming up, not just gm hitting the recall switch. nissan now recalling over 1 million vehicles. all the details on that one after the break. plus, why the best stocks to find growth potential may not be
5:22 pm
the most obvious ones. announcer: where can an investor be a name and not a number? scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: ranked highest in investor satisfaction with self-directed services by j.d. power and associates.
5:23 pm
5:24 pm
[ chainsaw whirring ] humans -- sometimes life trips us up. sometimes we trip ourselves up. and although the mistakes may seem to just keep coming at you, so do the solutions. like multi-policy discounts from liberty mutual insurance. save up to 10% just for combining your auto and home insurance. call liberty mutual insurance at... [ thump ] to speak with an insurance expert and ask about all the personalized savings available for when you get married, move into a new house, or add a car to your policy. personalized coverage and savings. all the things humans need to make our world a little less imperfect. call... and ask about all the ways you could save. liberty mutual insurance. responsibility. what's your policy?
5:25 pm
welcome back to "fast money." we have some breaking news here with regard to state street, up about 2 1/2% in afterhours trading. a major bank has authorized a common stock repurchase authority. they're going to rise the dividend to 26 cents per share to 30 cents per share. a $1.7 billion buyback. and a boost in the dividend. this comes following the 2014 c car or the comprehensive analysis review, under which the federal reserve approved these
5:26 pm
banks and their return plans. the headline, a boost in dividend for state street, as well as a stock buyback. back over to you. >> another major recall from one of the big automakers hitting the street today, curtesy of nissan. phil lebeau is live in chicago with more. another day, another recall, phil. >> this is a big one, mandy. not a huge one that's going to be hurtful for the company. it is a big one nonetheless. nissan recalling more than 1 million vehicles. 2013 and 2014 models. the reason, software that would impact the passenger air bags. it may not deploy. there's two known accidents. it covers some of the top-selling models, including the ultima sedan. almost all of the recalled models were sold here in the united states. as you look at shares of nissan, a lot of people sit there and say, you're recalling more than 1 million vehicles. isn't that a huge recall? yes, it is. but keep in mind, i've done some research on this. you go back to 1985.
5:27 pm
more than 400 million vehicles were recalled in this country. and the vast majority of them are for problems that are not huge problems. they're issues that need to be repaired. but not ones that are going to have huge impact on the bottom line. you look at nissan for this recall, more than 1 million being recalled this latest one. >> phil lebeau, thank you very much. and i was going to give everybody a chance to trade nissan here. and i thought i would ask tim first. >> i don't think you're selling nissan. i don't think you sell toyota here. we're seeing some recovery. fiat and bmw, you're getting growth and companies that are going on. gm, you buy gm. gm's giving up $6 billion on market cap. if it's a toyota-style fine of $1.6 billion. >> even though the lawsuits are starting to roll in? >> this is a great opportunity in gm. and somewhere on 34, $35 on the
5:28 pm
chart. i brought some a couple days ago. the valuation and the growth they're seeing, and the uptick. look at the durable numb we saw. car numbers are headed into 2016 with strength. >> i wanted to give it a couple of days/weeks for it to shake out. this has been stuck at down 14%, year-to-date. and then, 15%. then, 16%. against the backdrop of ford being down. toyota, down roughly 10%, year-to-date. it seems like there's a lot more to come. and in the chart, gm, if you buy it against a $30 stop, i think you're okay. but the chart looks like it's rolling. >> okay. any other autos that you're looking at? >> i like gm. i agree with tim. i think part of it is down on the idea that maybe the bankruptcy could be unwound. i think is it possible? sure. but it seems like such a long shot. they're protected from liability here. >> okay. let's get a trade update.
5:29 pm
after getting hit in february, emerging markets seem to be making a comeback of about 4% this week alone. is this for real? >> i think you have to trade it hard. and eem has shown, at 40 bucks, you have a channel and resistance that goes back to june when we got the start of the taper tantrum. i think what the fed is doing is normalizing for emerging markets. emerging markets didn't benefit for stimulus. you sell the eem at 40. and sell on the upside at 41. and wait to get back in this trade. unlike the last nine months, when you look at the spread, this is starting to turn. emerging is starting to outperform the s&p 500 in the last few days. you watch that part of the spread and reload lower. >> not worried about the s&p downgrade of brazil? >> brazil rallied. they priced this in. i'm worried about the strength in the real. it had a big really in the last couple of days. elections are a big deal. we're pricing that in again. they rallied on the downgrade.
5:30 pm
and they give an outlook stable. >> and we learned from experience, that in emerging markets, if there's a default or downgrade or the crisis, it's a buying opportunity. >> brazil is interesting here. coming up, the massive trade that spooked the markets today. and the company that acts as your personal health and wellness assistant, all from the comfort of your smartphone. there's an app for that. impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.
5:31 pm
but i didn't always watch out for myself. with so much noise about health care, i tuned it all out. with unitedhealthcare, i get information that matters... my individual health profile, not random statistics. they even reward me for addressing my health risks. so i'm doing fine... but she's still gonna give me a heart attack. innovations that work for you. that's health in numbers. unitedhealthcare.
5:32 pm
5:33 pm
♪ welcome back to "fast money," everybody. live at the nasdaq market site. we think part into the tech and biotech sectors. but, all companies are not created equal. we explain what she calls the false temptation of growth. explain. >> hi. it's great to be back on "fast money" again. investors tend to be emotionally attracted to high growth companies. high expectation companies. if you were to have a strategy
5:34 pm
of just investing in the highest growing or forecasted growth companies, it wouldn't pay off. what we try to do is identify stocks that have demonstrated an ability to put up stable growth historically. >> do you have one of those names for us? >> one stock we like right now, has been directv. they've been able to grow sales about 10% a year over the past five years. and what they've been able to do because they have a very efficient business that is highly cash-flow genretive, is use some of the cash flow to buy back shares. they've bought back one-third of the shares in three years. and half of the shares in the past five years. when you look at growth on a sales-per-share basis, they're growing at the same rate of netflix. >> and netflix would be the counterpart to what you're
5:35 pm
saying about directv? >> that's right. directv is trading at 13-times earnings. and netflix is trading at 200-times earnings. you see because of emotion, high forecasted growth companies tend to be highly valued. at the end of the day, it's that expensive valuation that ends up trumping growth. >> would you then have that on as a pairs trade and hope for a convergence? or are you just going to be long what you perceive is the value side? >> in terms of netflix, we don't dislike the stock. it's just expensive. we don't own it. in directv, it's a stock we like a lot and like it without a hedge. >> directv, huge day today. a lot of merger talk. up 6% day on a lousy tape day an opportunity to take profits on a stock? to your point that's had a tremendous run? or do you let bygones be
5:36 pm
bygones? >> we have hold directv for a while. we'll continue to hold it. relike the stock. in terms of the short-term trading perspective, we find with larger pap companies after a big day, you tend to see a pullback or reversal. it might make sense to wait for that reversal to find an entry point. >> what do you think? netflix versus directv? >> i love the value there. the whole sector is starting to retrait. the cable providers are trading at multiples. >> thank you for joining us today. >> thank you. it was a pleasure to be here. it was a trade that spooked the market. a massive bearish options bid in the s&p 500 that had some traders so scared they sold stocks. mike khouw is in san francisco with more. what happened? >> it was an interesting trade in tourist backs. we saw a big trade in the spx may 1995 puts. over 15,000 of these traded.
5:37 pm
now, there's $100 multiplier. that's $13,200 a contract. they made a bearish bet on the s&p. now, if you were looking at this from a hedger's perspective, this is equivalent to shorting almost $2.9 billion notionally, in the s&p 500. so, this is a pretty substantial bet in terms of size. it was substantial because it was in the money. the 1995 strike much higher than the s&p price of 18.60. who trades these on the long side is making a direct bet. >> if any of our viewers want to learn more, we have more on cnbc.com. you can catch options action, friday at 5:30 p.m. >> i want to know more about that rig he has going on. he has the glasses going. >> do you see the view behind me
5:38 pm
here? i mean, i'm a little nearsighted. but to be able to see that beautiful skyline, i've got to sport the glasses. >> nice poster, mike. >> a beautiful blue screen. has the combover, nerdy geeky thing going on. too much in silicon valley. >> get out of new york, you look better. you probably carry your gadgets with you all day long. now, they may spend the night with you, as well. the company behind the sleeping aid app. and king the maker of candy crush, had the worst ipo of the year. is the rest ipos about to get crushed as well? [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor...
5:39 pm
[ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪
5:40 pm
5:41 pm
would you bring wearable technology into your bedroom? is that too personal a question? lark's personal sleep coach stays up all night monitoring your every move. and tells you how to improve your sleep in the morning. is this the beginning of a 24/7 relationship with our gadgets? let's bring in julia hu, the ceo of lark. how is what your app is doing
5:42 pm
completely different from the rest? >> hey, mandy. great to be here. so, yes. wearables is becoming a huge, huge space. and we're all very excited by it. our newest product. we started in sleep. our newest product is very different in a few ways. so, as we had mentioned, lark's personal assistant for health and wellness is different in two ways because it works on your phone. so, we are preinstalled in the samsung s5 that is coming out. and without wearing anything, no wearables, you can get the same data, that you get from wearing a wearable. but just by carrying your phone around. and it doesn't kill battery. it's an incredible new technology, called the low-power sensor, which allows us to take the data, whether you're walking, running, sitting in a car, driving, and turn it into something that can help you
5:43 pm
become more and more active. so, that's the first real difference. the second difference is that we work with experts, behavior-change experts from harvard and stanford. and most people don't get impacted and persuaded by just steps alone. >> how do you make money? here's the money question, being cnbc and all, right, julia? how do you make money? and how much money are you making? >> sure. that's great. so, by being on every, single samsung s5 phone that's coming out, we hope to really solve a health problem, which is i want to lose some weight. please help me. and our experts created an assistant for you to coach you to become more and more healthy. that is a service, much like a fitness trainer would be, or
5:44 pm
nutritionist. so, our program is $2.99 a month. but for every galaxy samsung s5 owner, the product experience is free for an entire year. >> okay. we have to leave it there. julia, thank you very much for explaining that to us. let's trade wearable tech here. everybody is getting into it. even intel bought basis science to get into nike's fitbit. >> if you owned apple, you're going to get some exposure. i don't know how much it will move the needle. but i imagine they will be in there with everybody else, as this starts to evolve. >> i'm long nike. and to me, this is a part of their business i'm excited about. it's less than 10% of the revenue stream. it's closer to 5%. this is where these guys are going. they're getting into apparel. and nike on the chart, $70, it trades very interesting. it trades a significant enough
5:45 pm
discount to adidas. they are winning in that space. >> what about google glass? >> you have garmon up. closed in the green. we've been talking about it forever. you don't need to wear the geeky thing on your head. mix in some salad every once in a while. >> are you trying to lose weight? >> no. i'm not. very expensive. very heated. drink sol water. >> bring it back to the trade. why do we have to pick a winner? pick what's in the products. pick the qualcomm ship. pick intel. when a clear leader emerges, you can segue out of those chips. right now, i'm long qualcomm. let's look at the intraday move on king digital entertainment. falling hard today. and it was its first day of trading. the ceo of king appearing on "squawk on the street."
5:46 pm
and he had interesting comments on the company's depen dense on candy crush. >> what we're here for is to build a portfolio of games. we want to build a network of loyal players that play a portfolio games. we have three games in the top-ten grossing platforms. the top-ten grossing chart is actually extremely stable. there will be always many games like happy birds that go up in the top ten. but top-ten grossing is a different matter. there's few players in this chart. they're very stable. >> it looks like he was unable to convince investors. it finished down 15%. is it the rest of the ipo pie plan get a ripple? >> i've been talking to trading desks.
5:47 pm
they're worried about it. i don't think it's time to hit the panic button. but it's time to be concerned. closing like that, that's a bad sign. we got three pricings. applied genetics, a biotech company. square 1 financial. trinet, which outsources human resource services. what you want to look for is cancellations. repricings. tonight will be interesting. any of them price below the price talk, that will be a sign to all these dozens of ipos out there waiting to go public. and we'll see the numbers start coming down. we had one break. a10. that was last week. that was a company that helps networks run faster. $15 price. it broke below that today. that's one of the first one that broke below its price. >> is this a sign of sanity? i think facebook's deal shows you how things are. there's a lot of currency in stocks being spent.
5:48 pm
and because a deal was priced -- the bankers did a great job. they got this company at the best possible valuation you could have. just because investors said this is a one-trick pony, how is that an indictment for the entire market? >> this is not a one-trick pony. this is a well-known stock. i don't buy that argument at all. this is a big one. this was a good representation of the ipo market. i agree with you. i'd like to see more sanity. i'd like to see prices gently come down. you don't want to see the market just crash on you. pull all of the ipos and everything falls apart. that's not good for the markets. we want to see things come down a little bit. the buyers are getting nervous right now. and we have pricing tomorrow in addition to three pricing tonight. that's what you're going to watch. by the way, a lot of the names last week, payocity, those are now trading below the first day price, too.
5:49 pm
they had big pops. they're trading below first day price. they're still up. but people who are pricing ipos in the next few weeks are watching these trends right now. gentle decline in the prices. low end of the pricing. maybe a few below, i think would help a lot for the markets. >> does anybody like king here? >> the first day that comes to my mind is allbauibaba valuatio. if you think reality's getting a check here, wouldn't that take the steam out of -- we've seen it come out of yahoo! you're talking about valuation, that's going to be the biggest valuation call of the year. >> there are literally hundreds of chinese ipos behind alibaba. they shut down the chinese ipo market a few years ago. there was an enormous of companies that are waiting in the wings of alibaba to go. there's a lot at stake over in
5:50 pm
china and here in the united states. you're right. the next 48 hours will be very, very important in terms of pricing. we just don't know right now. we might know within the next hour or so. >> beating the drum. you say this has been an obsession whether the ipo market is in a bubble. you can imagine, any negative headline like this, does of course send shock waves. >> the most important thing is the stock market. if the stock market continues to hold up well, you will see arguments for people continue to bring the stock. they won't cancel anything. they might lower the prices. >> thank you for coming all the way down here. >> we have been doing this show for a long time. bob is cnbc royalty. this is twice you've been here. >> this is a great conversation. we need you here more often. >> the important thing, well, i was up in englewood. we were talking. we had a whole big thing. >> he's waving. >> this is the first time i've ever heard you sound intelligent. >> it's backwards.
5:51 pm
you know. we're on the floor. we use our own language on the floor. >> i only say that because i know bob over 20 years. >> thanks a lot, bob. we've seen it before. ceos behaving badly. another one makes a huge slip-up. is this a chance to make some "fast money"? we're going to break it down, next. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again. i just ah woke up today and i said i need something sportier. annnd done. ok maxwell, just need to ah contact your insurance company with the vin number. oh, i just did it. with my geico app. vin # is up to the loaded.
5:52 pm
ok well then jerry here will take you through all of the features then. why don't weeeeeeeeeeee go out to the car. ok, i'll just be outside... ok, yeah. his dad is my boss. yeah. vin scanning to add a car. just a tap away on the geico app.
5:53 pm
your all-access pass to full seasons of tv's hottest shows for free with xfinity on demand. it's the perfect week to work from home. so replace your doorbell with a hornet's nest. there's no time for disturbances. ♪ or take a 7-day lunch hour. romance! action! other shouty words. there's watching. then there's watchathoning. boom. starts march 31st.
5:54 pm
♪ okay, guys and gals. let's look at this. this is a clip posted to instagram of ceo robert silliman getting off a plane in miami. excuse me. this is live television. >> you're supposed to shut your phone off. >> 14 years in tv and i haven't learned that first lesson. apologies, everybody. well, if a strong ceo is the measure of a strong company, what does this exactly say? karen, what do you think? >> this is sfx. it's a rollup of electronic dance music festivals. >> this is what you would expect from the ceo. >> it's just ridiculous behavior. he gets off the private plane with a lot of bravado.
5:55 pm
that whole thing. there was another part of the clip where he does sort of a michael jackson crotch maneuver. i don't know. they found inappropriate. there we go. there it is. >> that's lovely. >> looks like urkle. i'll bet he didn't think this would be on "fast money" tonight. i just think that the whole story here is kind of ridiculous. the ipo came at 13. it's 40% from that. livenation is where you want to be. i don't get the rollup at all. the only thing the stock has going for it is that it has a 44% short interest. they report tomorrow morning. >> we'll be watching tomorrow morning. it's time for pops and drops. the big movers of the day. a pop, pvh corps. >> a little beat on earnings. a nice pop for them. >> the gold miners, dropping about 4%. >> gold is not rallying in eastern europe as it escalated today. you should get out of another
5:56 pm
spot. >> aol. >> jeffrey had positive comments. and used the term sum of the parts. that's a term used in hule hewlett-packa hewlett-packard. >> and panera, dropping 8% on a buy. >> not the investor day they wanted. has to hold 165. >> your first move tomorrow when we come back. we come back. more "fast money" very shortly. here's a word you should keep in mind "unbiased". some brokerage firms are but way too many aren't. why? because selling their funds makes them more money. which makes you wonder. isn't that a conflict? search "proprietary mutual funds". yikes!! then go to e*trade. we've got over 8,000 mutual funds and not one of them has our name on it. we're in the business of finding the right investments for you. e*trade. less for us, more for you. the fund's prospectus contains its investment objectives, risks, charges, expenses and other important information
5:57 pm
and should be read and considered carefully before investing. for a current prospectus visit www.etrade.com/mutualfunds. ♪
5:58 pm
♪ humans -- even when we cross our "t's" and dot our "i's," we still run into problems. that's why liberty mutual insurance offers accident forgiveness with our auto policies. if you qualify, your rates won't go up due to your first accident. because making mistakes is only human, and so are we. we also offer new car replacement, so if you total your new car, we give you the money for a new one. call liberty mutual insurance at... and ask us all about our auto features, like guaranteed repairs, where if you get into an accident and use one of our certified repair shops, your repairs are guaranteed for life. so call... to talk with an insurance expert about everything that comes standard with our base auto policy. and if you switch, you could save up to $423.
5:59 pm
liberty mutual insurance. responsibility. what's your policy? it's that time of day we call the final trades. >> i would be buying citibank on the move down. it's not a dividend play. it's a growth play. if you look at the balance sheet, you'll be happy. >> that goes against what dick bove told us earlier on. grasso? >> aol, you know, i looked at it. if you look at it, it's at the $43 level. usually say on a pop like this, you don't want to rush in. you keep a three-day rule. as long as it holds a 43 handle, it's buyable. >> you're all about the rules. karen? >> i have to agree with tim. i think citigroup is down tonight. this is a place to buy it. the valuation is fair. >> and guy? >> for a rising rate
6:00 pm
environment, rates want to go lower. and i think they are going lower. tlt breaks through 110. tlt, mandy. >> tld. i'm going to be back tomorrow for more "fast money" at 5:00 p.m. eastern. but right now, may mission is simple, to make you money. i'm here to level the playing field for all investors. there is always homework in summer, and i promise to help you find it. mad money starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. people want to make friends, i'm trying to save you money. call me 1800-743-cnbc or tweet me at jim cramer. sometimes a corporate news vacuum on wall street can be a

14 Views

info Stream Only

Uploaded by TV Archive on